As the Jewish New Year starts, it would be amazing if we had a crystal ball that could tell us exactly what will happen: we could avoid mistakes, make profitable investments, or even win arguments with our wives (OK, that will never happen). There is an award-winning Israeli start-up, Endor Software Ltd., a Tel Aviv based company that has developed technology that, at least, in certain business applications can provide such information.
Endor is a predictive intelligence platform that automates the process of answering predictive business questions. The platform allows business users to ask any predictive question and receive high-quality results in minutes. On its website, various sample questions flash by, such as, “Who is likely to purchase this newly launched product when sent a text message?” or “Which stores are likely to sell more than 25% of brand X next month?” We do not think that the Endor system can predict on January 1 how much tax will you pay next year!
Taxpayers and their advisors, unfortunately, do not have crystal balls, but they do have something similar to predictive analysis – it is called tax planning. The tax code, regulations, and other authorities present a lot of flexibility in how an individual or business initially arranges their affairs. For example, when establishing a business, one can choose to run it as a sole proprietor, in partnership with another or as a corporation. Each choice presents different tax choices – advantages, opportunities and sometimes, pitfalls. For self-employed individuals, the choice of how to operate their business will greatly impact the amount and type of tax they pay, how their profits are computed and the amount of income they may be able to defer using various retirement savings arrangements. Tax planning opportunities present themselves in nearly every corner of tax practice and they make the future much more predictable.
We wish we could accurately and reliably predict health, happiness, and peace for the upcoming New Year. What we will do is wish you all a healthy and happy New Year and plan on being here to provide the excellent service that you expect from us. Shana Tova!
